A. As a condition of issuance of an encroachment permit, the city engineer may require posting of a maintenance deposit and/or performance bond or an equivalent security in a form acceptable to the city attorney. The city engineer may require that up to one hundred percent of any deposit be submitted in the form of a cash deposit. The cash deposit may be used at the discretion of the city engineer to provide for traffic-control, restoration of public facilities or removal from the right-of-way of work, materials or equipment when permittee or the permittee's agent fails to act in a timely manner to provide for the public health, safety or welfare. The maintenance deposit and/or performance bond shall otherwise be for the purpose of guaranteeing performance of work contemplated under the permit.
B. The amount and nature of the deposit shall be established by the city engineer based on the size, duration, and/or nature of the encroachment.
C. Upon completion and acceptance of work under permit, any funds unused shall be refunded to the permittee and any other bonds or security instruments shall be released upon written request to the chief public works inspector. Securities shall be processed for release no sooner than thirty (30) days after the city deems project complete.
D. If any deposit or security is not sufficient for the protection of the public interest in the public places, the city engineer may require an additional deposit or an increase in the security in such amount as he or she determines necessary. The permittee shall, upon demand, deposit the additional cash or security.
Upon failure or refusal to pay, the city engineer may revoke the permit, issue a "Stop Work Notice" and/or recover the deficiency by appropriate action in any court of competent jurisdiction. Until such deficiency is paid in full, no other permit shall be issued to such permittee.
E. Where work is to be done by persons or utilities operating under a franchise issued by the city or regulated by the state Public Utilities Commission or utilities operated by governmental agencies, a permit may be granted without making a deposit. In such cases, the permittee shall be liable for the actual cost of any work to be done by the city in restoring the area covered by the permit to the satisfaction of the city engineer.
(Ord. 264 § 1 (part), 2002)